The Environmental Effect of Ambient Charges in Mixed Triopoly with Diverse Firm Objectives
The Environmental Effect of Ambient Charges in Mixed Triopoly with Diverse Firm Objectives
Author(s): Kazuhiro OHNISHISubject(s): Economy, Business Economy / Management, Energy and Environmental Studies
Published by: ASERS Publishing
Keywords: ambient charge; Cournot triopoly; partially cooperating firm; pollution; profit-maximizing firm; socially concerned firm;
Summary/Abstract: Most models of economic theory assume that firms maximize profits. However, in the real world, not all firms adopt profit maximizing behavior. Therefore, this paper examines a quantity-setting mixed triopoly model comprising a profit-maximizing firm, a partially cooperating firm and a socially concerned firm to reassess the environmental effect of an increase in ambient charges. The paper demonstrates that an increase in the ambient charge can reduce pollutant emissions.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: VI/2021
- Issue No: 73
- Page Range: 247-250
- Page Count: 4
- Language: English